PR sculpting using nofollow does not work. i would argue it never has - others that it used to, but doesn't any more.
i have removed nofollow from all the sites i work on (external and internal both), except for links where i do not want to pass value (like paid links/advertising), but you could just as well set up a 302 redirect for those.
i also, as a general rule, nofollow any links i am forced to place. i will gladly link to almost anywhere with relevant or good content... i love linking.
but whenever i have to link (as in someone tells me what to do and it is no longer my choice), i nofollow - just to make a point.